Are you ready to take your business to the next level? In this series, Jim Cathcart will teach you the powerful moves necessary to advance your business in your existing market and how to expand your brand into new markets.Sign Up to Watch
-All right Jim. Today we are talking about growing new markets.
-And I'm excited because we're specifically addressing a lot of the questions we hear. Thrivers writing in, saying give us some moves that we can do to grow our business this year. And that's what we're doing. This is a power move.
And I'm excited because I'm going to read a quote from you and have you unpack it and give us action steps here.
-Great. And by the way, you've got existing markets. And what you do day to day, typically, is you serve that existing market and you look for ways to grow that market and expand your reach into that market.
What we're talking about now is growing new markets where you don't have to come up with a new skill. You don't have to come up a new product. You don't have to develop whole new campaigns, necessarily. But you get new business by just serving a different group of people.
-OK, I love this. This is a quote from book. You say "get outside your usual channels. Ask 'who else could benefit from what we do?' Expand your thinking."
So break this down like fractions for us here. You gave us a little teaser there. What do you mean and how do we do this?
-I think one of the classic examples for growing a new market for an existing product is Arm & Hammer baking soda.
-What is baking soda for?
-Baking, yeah. So that would be it. That's right, yeah. So baking soda is for baking.
Well what else is it good for? Well, you can use it to put out a flame. There's a lot of other ancillary uses for baking soda. But something that was discovered one day was-- by accident-- was that when you have an open box of baking soda in a refrigerator, it will absorb the odors.
Arm & Hammer said bing! Opportunity has arisen. It's raised it's lovely head. Let's serve it.
And they said, hey folks, buyers of baking soda, people who don't nearly as often come and buy baking soda as you used to. If you will leave our product open inside your refrigerator, the smells will go away. Put an onion in there, put fish in there, put baking soda in there, bada bing.
-There you go.
-Put an onion in there, put fish in there, don't put back soda in there? Ew. A new refrigerator.
So they started marketing that way--
-Whole new markets.
-And all they dos was-- they didn't change the product. They didn't even change the package.
-They just started marketing to the existing people, same medium, and just said, and by the way, if you're buying our product, it will also keep your refrigerator smelling fresh.
Well the cool thing about that is repeat purchases. Because after a while, it's done its job and it's time for a new box. So what did they do? Now just Arm & Hammer, but this was done by gazillions of people because it's such a great idea.
They said well, you know, if you've been using this for-- let's make this up-- three months, then you need a new one. So let's put in expiration date. Expiration means a product's no longer as useful after that date. Let's print it on the box. So they did that.
-Well, other people said, our products not nearly as fresh after X weeks. Let's put an expiration date. Well, it doesn't really expire. Yeah, but it's just not as fresh. Yeah, but it says it'll still taste as good. Yeah, but you know, wait a minute, you know--
-That's not the point.
-That's not the point. And so now then you find expiration dates on rocks.
-I love it. I love it.
-Doesn't mean they're going to expire, means somebody wants a repeat sale. So I would say on drugs and medicines, expiration date. On perishables, expiration date.
-Rocks, not so not much maybe.
-On the bottle of soft drink, keep it 11 years. Don't worry about it. I'll drink it.
-So you're talking about growing new markets. And that's scary. That might be weird. That might be a totally new thought that the Thriver maybe has never encountered before. Maybe they're a photographer and they have their niche market and that's what they do.
But tell me why is this so huge? How big of an impact can this have?
-Oh, because it's easy. I mean, take for example something we were talking about earlier today with clay. We were talking about barn wood, wood from a barn. What good is wood from a barn if you're not building a barn?
Well you can build a shed. Yeah, but that's just a little barn.
-It's like a barn, yeah. It's a barn.
-Well, you can repurpose the product without changing the product at all and use it as a creative wall covering And create a very special atmosphere.
-Which would also lead you to creative ideas in the design of a restaurant, like a Cracker Barrel restaurants, which would possibly use barn wood for wall decoration, but then farm implements as decor.
-You know? And then you think, well, what kind of signage from the old days, or old rusted sign from the side of a road--
-Out in the country. Son of a gun, you can sell those for $35 and put them up in a restaurant.
CALEB TAYLOR: Love it.
-So there's lots of ways to repurpose what we have.
-Good. That is a perfect example. I love that. What's another example of easily adding that new market?
-Well, let's take, for example, what I do. I work as a professional speaker and a trainer. I consult with businesses on how to be more successful.
-Well, who else could benefit from that without me changing what I do much, who could benefit? How about nonprofit organizations? Associations, and clubs, and societies, and charitable groups, and things like that.
CALEB TAYLOR: Right.
-Same principles, the only difference is they don't retain the profit, they repurpose the revenue to be of service. So teach them the skills that they're not typically getting.
CALEB TAYLOR: OK.
-You know, how do you sell a service when it's not really selling? How do you sell in a non-sales environment.
CALEB TAYLOR: OK.
-Sales skills for non salespeople.
-I love this and I think this is something--
-Finance for non-financial people.
-So how do we do this though? If I'm ready to do this as a Thriver watching, how do I do this practically?
JIM CATHCART: The first thing you do just identify the opportunity, just do some brainstorming. Who else is trying to get-- remember the discussion earlier?
CALEB TAYLOR: Yeah.
-Trying to get the effect that I provide, the value that I provide. Because that's what it's all about, not the process of getting there. Who else would benefit from that effect?
CALEB TAYLOR: Make the list of who else would benefit from the value you're--
-Where else could you put barn wood to get some value? You could stack it up in the yard and use it to build a platform.
-I love that.
-I don't know.
-I'll give you an idea.
-Years ago, living here in Tulsa, I bought my first home.
-Little $24,000 dollar, 1,000 square foot home. Little, tiny, dinky home. And one night I'm sitting in the living room watching John Wayne in the movie "The Alamo", OK? With my son and my wife, and it's a warm summer day.
CALEB TAYLOR: Yeah.
-And all of a sudden there's this loud screeching sound and then some huge thuds followed by engines racing and more loud screeching sounds. A kid that lived in the neighborhood had stolen his parents car, wasn't old enough to drive, and was out on a joy ride and lost control. Stepped on the gas instead of the brake, came up through a neighbor's yard, bounced off a couple of trees, hit the front porch of my neighbor's house, bounced off of that, and headed down toward the street, nose dove into the street with his grill, and then came up with it floored headed for my driveway.
-That day I had leased a brand new car and it was parked in the driveway. And he rammed into the back of my car and knocked it through the garage door, into the house.
-Yeah. It was huge.
-And I was trained as an army medic and hospital corpsman so I knew first aid.
-And I knew in a case like that, there was injury, but there's also shock.
CALEB TAYLOR: Right.
-Which was a big part of the trauma, and that's dangerous if it's not treated. So I went outside and I looked at the damage but I focused on, save the life. Right? That's the main thing. And I saw this kid, I don't know, 15 years old or something, and he's gotten out of the car and he's saying, I'm really sorry, and he's groggy as can be. And I said, hey, lay down, lay down. So I got him to lay down on the driveway and prop his feet up a little bit higher than his head to get some blood back in his head.
CALEB TAYLOR: Sure.
-So we'd deal with the shock, and then I checked him out to see if was injured, and he didn't appear to be.
-But the car was sure injured, and my car was demolished.
CALEB TAYLOR: Wow.
-And my house, for heave's sakes, plus I missed the movie. But the house garage door is off its hinges. Now, interestingly, the garage door itself wasn't damaged. The frame of the garage door was ripped off its hinges and shoved in the house and framing around the garage door was certainly torn up.
So all this gets cleaned up. Everything's fine. I get a new car and all this stuff. I got a garage door I got nothing to do with.
Because they had to put a new one on-- one of the roll-up types, and this was one of the solid doors of the old days-- the heavy one that you would lift up. So I'm thinking, what can I do with a garage door? I don't have a truck. I can't haul it away. So I went out in the backyard and I repurposed.
-All right? I found new markets for existing product. I took the two clotheslines that we no longer used a clothesline because we had a dryer, right? And I moved one of the clotheslines closer to the other clothes-- not the clothesline, but the post you know-- a big t-shaped thing.
And so now I had two clothesline posts, like this, and no line between them. And I took the garage door at my dad's suggestion, and put it on top of them and created a little gazebo shed with no sides on it. And so I've got a solid wood top. And I've got the poles coming down and a little sheltered place in the back yard for a hot summer day.
-This is good.
-And we would go out there and put a couple lounge chairs and have a little soda.
-This is how you have to think about your business.
-That's exactly how you--
-This is how you have to think about your value.
-So if you're in the business of hauling away old garage doors, you say wait, wait, wait. You got a clothesline? But, seriously, it's that kind of thinking.
-I love it. And that was the action statement-- just to really think about, take a step back, analyze your value that you add. Who's looking for this value? And just start thinking of creative ways to repackage that in a different market.
-Think of the play, the Broadway play, "Stomp," which is, you know, it's all percussion. They repurposed garbage cans into musical instruments, right?
-So it's endless-- the possibilities.
-Absolutely, it is endless.
-I love this, and this can be huge. Like you're saying, it's not going to be a ton of extra work for you. This is just repurposing what you already do.
-Yeah, so you think, OK, we're a beauty salon. What else could we do? I don't know. I just made that up. So I don't know, what could a beauty salon do?
Well, what do we do? We help people feel better about themselves by showing them ways to look more presentable, more beautiful, whatever. OK, or we do hair grooming or something like that. What else could we do? I don't know, but if what people come to us for is confidence, beauty, and a little nurturing.
Plus, we realize that a beauty salon is a social environment, and people go there for the same reasons, in some level, that they go to a coffee shop-- to hang out with people that are interesting to be around, right? Where they feel safe and feel comfortable and cared about. Then we just look for other ways to enhance that environment.
-I love it. This is awesome. This is huge, and like we said, the potential for growth here is massive if you start thinking about this and harness that. I'm so thankful for this. You've given us specific action items that we can apply. So thank you so much, Jim.
-You bet. Thank you.
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